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The 10 largest Hotel Groups and the 10 Largest
Hotel Brands in the European Union
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The MKG 2005 Ranking Shows the
Incontestable Predominance of Accor 

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Paris, January 27th 2005
  • With nearly 9,000 additional rooms, Accor strengthened its position as a leader in the European hotel industry.
  • The merger between Travel Inn and Premier Lodge led to the creation of a giant in the hard-budget hotel sector in the United Kingdom.
  • Marriott fell to ninth place after selling off its holdings in the Ramada International master franchise. 
As a preview of the in-depth European hotel industry report, compiled each year by MKG Consulting and published in the February/March issue of HTR, we present herein a list of the 10 largest groups and the 10 largest brands located in the European Union. For the first time, this ranking incorporates hotels located in the ten new European Union member states.

As was the case last year, the 2005 ranking of hotels located in Europe demonstrates stability, revealing a rather prudent comportment on the part of the majority of large hotel operators. Accor, which had the most sustained rate of growth, strengthened its leadership position in the European hotel industry. A few major operations made the headlines and modified the ranking of other large European hotel groups.

Annual ranking of European hotel groups (as of 01/01/2005)

Hotels
Rooms
Change
Rank

2004 

Rank

2005 

Group
Country
2004
2005
2004
2005
Rooms
%
1
1
ACCOR
FR
2,098
2,159
226,272
235,205
8,933
3.9%
3
2
BEST WESTERN
US
1,106
1,126
71,497
73,455
1,958
2.7%
2
3
INTERC.HOTELS GROUP
GB
462
469
72,882
72,273
-609
-0.8%
4
4
LOUVRE HOTELS
FR
858
861
60,529
60,730
201
0.3%
5
5
HILTON INT.
GB
245
252
52,827
53,154
327
0.6%
7
6
SOL MELIA
SP
207
205
42,240
43,083
843
2.0%
8
7
TUI
GR
168
170
40,661
40,377
-284
-0.7%
9
8
CHOICE
US
433
404
35,681
34,794
-887
-2.5%
6
9
MARRIOTT INT.
US
280
144
45,801
29,722
-16,079
-35.1%
10
10
NH HOTELES
SP
195
200
27,228
28,037
809
3.0%
Source: MKG Consulting Database - 01/05
Hotel supply data covered the 25 countries of the European Union in both 2004 and 2005. 

The 2005 ranking of hotel groups shows the incontestable predominance of the Accor Group in Europe. Present in all categories, from hard-budget with Formule 1 to the upmarket with Sofitel, the French giant has locations in 20 of the 25 EU member-states. In 2005, the rate of growth of its hotel supply was one of the most constant in the EU (+3.9%). These results do not include the two-dozen Club Mediterranean units located in the European Union. With its acquisition of holdings in 2004 of nearly 29% in Club Med, Accor strengthened even further its position as number one, and rounded out its supply by entering into the upmarket leisure segment.

After a period of rationalisation of its hotel portfolio, which resulted in the purging from its network of hotels that did not meet its criteria, Best Western turned around to experience a 2.7% rate of growth, passing to second place, ahead of the British, InterContinental Hotels Group. Indeed, the largest hotel group in the world seems to have paused (-0.8%), after having registered a sustained rate of growth in recent years.

The Spanish groups Sol Melia (6th, at +2.0%) and NH (10th, at +3.0%) continued their expansion and demonstrated the energy of the Iberian hotel industry, despite the summer slowdown in tourism in the country, and drops in RevPAR were experiences throughout the year. Parallel to the development of its usual brands, Sol Melia opened the first Hard Rock Hotel in Europe. For its part, NH hotels continued its expansion in Spain, but also throughout the rest of Europe, with, for example, the opening of its first Italian hotel in Venice. 

Other groups have demonstrated a degree of moderation in their development, such as with the Hilton International (+0.6%) and Louvre Hotels (+0.3%) groups, which resulted from the 2004 merger between all the hotels of the Société du Louvre (e.g. the budget and midmarket hotels of the Envergure Group (Première Classe, Campanile, Kyriad) and the upmarket chain, Concorde. The travel giant, TUI, remained rather stable. The rationalisation of the Choice network led to a drop of 2.5% of its supply.

The most notable change in the ranking of the major groups in Europe is the loss of 3 places by Marriott. Indeed, last October, Marriott yielded its holdings in Ramada International to Cendant, who has the Ramada brand franchising rights outside the United States. In Europe, Ramada is very well established in the United Kingdom, and in Germany, via partnerships with Jarvis and Treff, as well as in Northern Europe. Already owner of the rights to the Ramada brand in the United states, Cendant will continue to focus on the expansion of this brand at the global level, and strengthen its position, up till now only marginal, in Europe. Marriott's interest is henceforth to dedicate itself in the development of brands that it has a good control over. This new distribution of roles has led to a 35.1% drop in the Marriott group's European portfolio.

Annual ranking of European hotel brands (as of 01/01/2005)

Hotels
Rooms
Change
Rank

2004 

Rank

2005 

Group
2004
2005
2004
2005
Rooms
%
1
1
BEST WESTERN BEST WESTERN
1,106
1,126
71,497
73,455
1,958
2.7%
3
2
IBIS ACCOR
568
598
57,968
61,993
4,025
6.9%
2
3
MERCURE * ACCOR
548
543
62,014
61,721
-293
-0.5%
4
4
NOVOTEL ACCOR
270
279
42,060
44,084
2,024
4.8%
5
5
HOLIDAY INN IH GROUP
275
266
41,930
40,873
-1,057
-2.5%
6
6
HILTON HILTON INT.
128
131
31,828
32,453
625
2.0%
7
7
NH NH
195
200
27,228
28,037
809
3.0%
-
8
PREMIER TRAVEL INN WHITBREAD
-
443
-
27,678
-
-
10
9
ETAP HOTEL ACCOR
284
307
22,403
24,426
2,023
9.0%
8
10
FORMULE 1 ACCOR
327
326
24,112
24,067
-45
-0.2%
Source: MKG Consulting Database - 01/05
Hotel supply data covered the 25 countries of the European Union in both 2004 and 2005. 
*Mercure chain: incl. Libertel, Orbis, Parthenon

The other significant change in the ranking in 2004 was the acquisition of the Premier Lodge budget brand by the Whitbread Group for 725 million Euros. The Spirit Group acquired this brand one year earlier from the brewer, Scottish and Newcastle. The fusion between the Travel Lodge units of the Whitbread Group gave birth to a new brand, Premier Travel Inn, the undisputed leader in economy hotels in the UK. The Premier Travel Inn brand thus made a remarkable entrance into eighth place among hotel brands in Europe. Thanks to this acquisition, Whitbread found itself among the top 10 hotel groups in Europe.

In the ranking of brands, Best Western reinforced itself in first place at the European level. For the Accor Group, accent has been placed on the budget brands. Ibis and Etap Hotel even registering the highest growth rates among the 10 largest European hotel chains. Ibis even becoming the second largest brand at the European level, passing ahead of Mercure. Thus, with the creation of Premier Travel Inn, budget hotel brands are the most dynamic of the supply, while 3* and 4* chains were less fortunate, between -2.5% for Holiday Inn and +4.8% for Novotel.

Methodology

The MKG Consulting Database for Europe contains a sample of 6,000 corporate chain hotels, representing 600,000 rooms in Europe. The data, gathered monthly and for each hotel, is redressed according to the category within the corporate chain hotel supply and by the weight of each country in the European Union.

MKG consulting has the largest hotel database in the world outside the USA, with an excellent representation of all the hotel segments.

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Contact:

Georges Panayotis
+33 (0)1 56 56 87 90
georges.panayotis@mkg-consulting.com
http://www.mkgconseil.com
Also See: 2004 European Ranking of Hotel Groups; Best Western Holds Top Position of 25 Brands in Europe / MKG Consulting / February 2004
The Worldwide Ranking of Hotel Groups 2003; The World’s Top Ten International Groups Increase Their Supply by 2.6% / MKG 
The Worldwide Ranking of Hotel Groups; The worldwide supply of hotel groups grows by 3% in 2001 (4.9 million rooms) / June 2002
European Hotel Industry Continues Recovery; Results for Corporate Hotel Chains by Country for the 12 Months through October 2004 / MKG Consulting / December 2004
Results of the French Hotel Industry in October 2004 Boosted by 4 Star Paris Hotels / MKG Consulting / December 2004
In August 2004, RevPAR Drops 2.1% for the French Hotel Industry / MKG Consulting / September 2004
In July, the Average Occupancy Rate for the French Hotel Industry Drops / MKG Consulting / September 2004
Monthly RevPAR of the 25-Nation European Hotel Industry Rose by 5.2% in May 2004, Recovery Continues / MKG Consulting / July 2004
French Chain Hotel Performance On the Rise, May 2004 RevPAR Up +8.5% Over Previous Year / MKG Consulting / June 2004
Monthly Corporate Hotel Chain Results in France for June 2004; Rise in RevPAR Reached 3.9% / MKG Consulting / Aug 2004
2004 Rankings of the 10 Largest International Hotel Groups and the 20 Largest Brands; InterContinental Hotels Group Overtakes Cendant / MKG Consulting / March 2004
Monthly RevPAR of the 25-Nation European Hotel Industry Rose by 5.2% in May 2004, Recovery Continues / MKG Consulting / July 2004


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